Questions for Factoring companies...

[berto13b]

Hello all,

I had a couple questions for all those in the factoring industry.

(1) Are there any Forums or message boards specifically for factoring companies?

(2) What is an acceptable amounts of mistakes, errors? We're all human. Sometimes mistakes are made Whether its the wrong name on an invoice or any other number of human errors that can come up while handling paperwork. If we factor 10,000 loads, and there are errors on 2 invoices... Just trying to get an idea of how things should be.

Thanks for any feedback

 

[htcollections]

I think it is important for you to make sure all pertinent information is exact when selling the invoices to a factoring company! If you are factoring 10 000 loads, i am sure there is quite a reserve and a small error isn't the end of the world!

 

[KeyFactor]

I agree with htcollections. We make efforts to review paperwork and advise our clients of errors BEFORE buying their invoices, but the ultimate responsibility lies with the client because they're the ones producing the documents. No system is perfect and sometimes a customer dispute can arise due to on oversight that gets by everyone. Reserves are a practical way of dealing with these issues. For something like an error in the name appearing on an invoice, I ask my clients to correct it and resend to the customer along with a note explaining why the invoice is being re-issued; I've never once heard a complaint from a customer about this practice. It might seem like an enormous nuisance, but in the event of a dispute or customer bankruptcy, your claim can be invalidated if the quality of the documents is compromised. There is no hard and fast rule about an acceptable amount of mistakes...it really just comes down to your relationship with your factor. Hope this helps.